GM to sell Hummer SUV brand; close four truck plants
03 Jun 2008
Mumbai: General Motors Corporation, the world's largest vehicle maker, has announced a series of steps, including closure of four North American truck plants to cut jobs, costs and its exposure to slow-selling trucks and SUVs amidst soaring fuel prices.
GM would close four North American truck plants and add shifts at two plants making more popular car models, chief executive Rick Wagoner said after the company's board approved a restructuring package.
GM, he said, was also weighing plans to sell the gas-guzzling Hummer model, the military-derived SUV brand.
"US economic and market conditions have become significantly more difficult," Wagoner said, adding higher gasoline prices have caused consumers to swap out of trucks and SUVs faster than the automaker had expected.
Wagoner also said GM's board had approved funding for a next-generation compact model for the Chevrolet brand as well as a new subcompact Chevy Aveo, expected to go on sale in the US in 2010.
GM's board also allocated production funding to the Chevy Volt, an all-electric vehicle that GM expects to have in showrooms by 2010, Wagoner said.
GM lost a combined $51 billion over the past three years and has no concrete plans to swing back to profitability in the near future.
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